industrial engineering - ittm-docs engineering.pdf · 1st level: enterprise/company ... industrial...

International Technology Transfer Management

Industrial Engineering Dr. rer. nat. Dieter Lubkoll

Wintersemester 2003/2004 Lecture Notes by Phillip Kern

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Industrial Engineering

1 LITERATURE ................................................................................................................. 2

2 CASE STUDY 1................................................................................................................ 2

3 DEFINITIONS ................................................................................................................. 3 3.1 INDUSTRIAL ORGANIZATION ....................................................................................... 3 3.2 SYSTEMATIC OF INDUSTRIAL ENGINEERING................................................................ 4 3.3 FUNCTIONS OF IE IN ENTERPRISES .............................................................................. 5

4 DOCUMENTATION OF A PRODUCT........................................................................ 5

5 ROUTING PLAN / MASTER ROUTE SHEET (FERTIGUNGSPLAN) ................... 6 5.1 BUILDING OF ROUTING................................................................................................. 7

6 CASE STUDY 2................................................................................................................ 9 6.1 CREATE A TEAM CHART FOR THIS TEAM .................................................................... 10 6.2 WHICH PRODUCT DOCUMENTATIONS ARE NEEDED FOR THE TRANSFER? ................... 11 6.3 DEFINE THE POTENTIAL STEPS FOR THE TRANSFER .................................................... 11 6.4 DEFINE A MILESTONE PLAN FOR THE TRANSFER ........................................................ 11 6.5 TRANSFER OF SPECIAL EQUIPMENT AND FIXTURES TO SIGNA .................................... 11

7 METHODS TO FIND OUT STANDARD TIMES ..................................................... 12

7.1 STANDARD COST CALCULATION ................................................................................ 13

8 WORK ORGANIZATION............................................................................................ 14 8.1 DIRECT DEPARTMENTS............................................................................................... 14 8.2 INDIRECT DEPARTMENTS ........................................................................................... 23

9 MATERIAL MANAGEMENT..................................................................................... 24

10 ORDER PROCESSING AND PRODUCTION PLANNING & CONTROL (PPC)26 10.1 TASKS, OBJECTIVES AND DEFINITION OF PPC........................................................... 26

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1 Literature

- Manufacturing Handbook of Best Practices (Jack B. Revelle) - Arbeitswissenschaft (H. Luczak) - The Memory Jogger

2 Case study 1 Due Dilligence “Behrendson AB(GmbH)”/Sweden goal:

• check of potential acquisition • sign confidentiality agreement • find recommendation to Senor Management ( YES or NO)

Create a team that will try to achieve the goals. team functions:

- finance - marketing - industrial engineering - sales - R & D

topics, the industrial engineer has to deal with:

- organization - new product development

processes (NPD) - skills / training methods (of

personal) - wages / incentives (Prämien) - lead times - personel (Shifts, employees,

White-Collar-Workers[WCW], BCW)

- maintenance - environment - safety standards

- goals (production/department) - stock / warehouse - suppliers - production lines / products - work method(s) - quality / corrective actions - IT - equipment / tools / automatication - standard costs - outsourced productions - ratios (Kennzahlen )/ productivity - order processing - technical planning

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3 Definitions 3.1 Industrial Organization

- describes a system of permanent regulations and input/output relations - determine the work of the operative and ensure function-fulfilment

(Wiendall/Spur) Industrial Organization contains 2 items:

• structure organization • work process organization

3.1.1 Structure organization Arrangement and organizational structuring of enterprises/operations according to principles of division of labour and organizational units (work places, divisions) as well as their cooperation/communication and coordination processes

(Birker)

monolithic line organization specialization of functional areas

P P

staff line organization

Management

Sales R & D OperationsMarketing

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Matrix Organization Management

SalesR & DOperations Marketing Admin

ProductManager

A

ProductManager

A

Production

Production

A A A A A

B B B B B

3.1.2 Process organization Special and temporal arrangements of work functions along the supply and production chain within the operational structure. The process organization regulates the activities for execution of tasks

(Birkel) 3.2 Systematic of Industrial Engineering six levels of analysis: 1st level: Enterprise/Company Macro level 2nd level: plant 3rd level: manufacturing area / planning area Meso level 4th level: work team 5th level: work place 6th level: job/function Micro level

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15.10.2003 3.3 Functions of IE in Enterprises

IE

Productioncontrol Production

facilitieslayout

Productionplanning

Internallogisics

Industrialmedicine R & D

Industrialhyginie and

safety

purchase

Qualityassurance

manufacturing

4 Documentation of a Product

product documentation

technical drawing bill of material (BOM) (Stückliste)

numbering system

- types: • explosion drawing • single part drawing • component drawing

- CAD program (Autocad X / Proengineering)

- intellectual property of the company important to save (e.g. microfiches)

- list of all the parts of a product

- types: • one level BOM • structureBOM • summarized BOM • variant BOM

-

- identifying article number for every special product

- e.g. SAP/R3

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5 Routing plan / master route sheet (Fertigungsplan)

- order independent documentation of the manufacturing process - works for one level

routing

types structure content routing for:

• final assembly • parts/components • repair

written as: full list or short list (abbreviations)

top data : • Art.-Nr. • description of

part/product • Nr. editions

(versions) • lot size

material data: • Mat.-Nr. • description of

material • units (kg,m, …) • quantity

production data

• process data • working place • standard times • production facilities

information

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5.1 building of routing IE: step1: “make or buy” – decision (e.g. “in house production” or “outsourcing” or

“purchase supplier”) step2: check

• drawings • BOM • Article-No. • equipment • working place • quality (how to test)

step3: think about

• lot sizes (5 or 50000 units/year) • final production date (how long it will take to build up the production

line?) • service life of product

step4: think about

• work study • production technology (machines, programming of machines) • organization

step5: planning of similarities (maybe you can use similar technologies from other

products) define processes planning of production equipment

• tools data from R&D (especially plastic, rubber need long time)

• fixtures (fest angebrachtes Zubehörteil) • test equipment

step6: cycle time definition

• standard times estimation(e.g. based on similarities) ask the worker Methods time measurement(MTM) (standard calculation)

step7: planning of logistics step8: need of NC-programs (for numeric controlled machines)

⇓ Routing plan

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standard time Time required by a average skilled operation, working at normal pace to perform a special task using a prescribed method allowing time for personal needs, fatigue(Ermüdung) and delay.

Standardtime

Calculation(standard costs,Herstellungskosten(HK))

data for wage payment

data for employment evaluation

data forline balancing

data forline simulation

data forstaffing

working hours begin and end of work without any break 8:00 a.m. – 15:30 p.m.

1. organization (traditional working hours): • 1 Shift • 2 Shifts • 3 Shifts

2. flexible working hours

• part time • job sharing • yearly working hours • capacity related working hours (work 10h/day if there’re orders, stay

home if not) German labour law working hours: <8h/day 10h/day max for 6 month breaks: 15min breakfast (8h/day) 30min lunch (6-9h) 45min lunch (>9h)

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29.10.2003 6 Case study 2 Transfer of production of printed circuit boards to Signa /Cz Situation:

- Martin GmbH, Berlin wants to outsource the production and test of printed circuit boards (PCB) for the product program of Martin GmbH to Signa.

- Martin has a program of 40 different PCB`s with yearly volume from 50 units/ year to 10 000 units/year.

- The make or buy-analysis was done and the management decision was to outsource the production of PCB`s to Signa.

Signa:

- Specialized company for the production of PCB`s and test of PCB`s ATEX approved and certified ISO 9001:2000

- State of the art insertion and test machines (SMD devices etc) - 3 shifts operation - Spray coating equipment for PCB`s - 50 employees, engineering department for PCB layouts - CAD –system in use - Test adapters and test programs made by Signa

Tasks:

- The operations manager of the Martin GmbH has installed a team to manage the transfer.

- Team members are engineers of R&D, Industrial Engineering, Production, Cost Accounting, Production Control and Purchase Department

1. Create a team chart for this team 2. Which product documentations are needed for the transfer? 3. Define the potential steps for the transfer 4. Define a milestone plan for the transfer 5. Transfer of special equipment and fixtures to Signa

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6.1 Create a team chart for this team

Transfer of production of printed circuit boards to SIGNA

Mission Statement

Transfer of production technology and necessary information of PCB-production to Signa, Czech Rep. enabling them to produce at same standards and output volume. Ensuring the right amount of PCB’s in the right time, right location and right quality.

Team Inputs

Information of present production 1. Risk Management: Plan “B” 2. Analysis of PCB portfolio (40 types, ABC-distribution) 3. Information politics 4. Basic data (documentation) 5. capacity planning for the next 6 months 6. Check of SW-compatibility 7. Copy of Test-SW 8. Direct contact with sufficient language skills (interpreter necessary?) 9. Interfaces of processes 10. Decision: Who is supplier for components of PCB’s? (Supply Chain

Management) 11. Logistics: Transportation, delay due to customs, etc. 12. Outgoing or incoming quality tests?

Team Goals & Outputs

Project goals • Project finish (production running 100% of present volume and quality)

end of April 2004 • Meet target costs

Output: • Documentation • Project plan • Validation of processes

Team Members

Team leader Team sponsor

• John Beschnidt • Andreas Reichert • Philipp Hartmann • Heiko Boelter • Haifeng Li • Russell Sahusilawane • Phillip Kern • Florian Hieber

Group Responsibilities

Successful transfer within cost and time limit Guarantee the communication between teams Guarantee the sufficient supply of PCB’s during transfer time and afterwards

Timing

1. Visit Signa plant 2. Documentation of processes (BOM, Routing Plan, test plans, etc.) 3. Define contacts 4. Feasibility study for emergency plan 5. Parallel production during transfer 6. Extended stock production (300%) 7. Pilot run

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6.2 Which product documentations are needed for the transfer? Product documentation necessary for transfer Product information Process information

• Drawings • BOM • Routing Plans without minutes • Test plans • Test adapters • Special condition instruction

(e.g. coating) • Samples

• Agreed project schedule • Agreed production schedule

(transfer and rolling forecast) • Supplier specifications (incl. names

and prices) • Electric circuit plans • Quality history • R&D experience

6.3 Define the potential steps for the transfer

Define the potential steps for the transfer (incl. milestones) 1. Analysis of portfolio (2 weeks) ABC-Matrix 2. Collect documentation and translation (6 – 8 weeks) Phase 1: Drawing,

BOM, Routing, test sheets 3. Agree on schedules 4. Transfer of A-Runner PCB

6.4 Define a milestone plan for the transfer s.a. (6.3) 6.5 Transfer of special equipment and fixtures to Signa Transfer of special equipment and fixtures to Signa

1. know-how-transfer 2. disassembly of equipment 3. transportation 4. setup of equipment 5. test of equipment 6. know-how-transfer

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12.11.2003 7 methods to find out standard times

actual data (from experience) estimated data • time measurements • ask the worker • expert systems • self documentation of time

• MTM (Methods time measurement) • WF (Work Factor) • Simulation

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7.1 standard cost calculation based on 100 units

Labor burden: • heating • lighting • depreciations

(Abschreibungen) • vacation • social cost / pension • rent/m² • cleaning • maintenance • production manager

(partly) • Quality managers • Industrial Engineer

€

labor cost(wages…)

labor burden(Fertigungsgemeinkosten)

material cost

material burden(Materialgemeinkosten)

labor cost(wages…)

material cost

variable cost

standard costs

material burden: • warehouse cost • incoming inspection • shipping cost

(Normally 10-15%)

€

standard cost

R&D

Admin

Sales/Marketing

profit marginSales price

(Price for customer)

discountlist price

product cost (for company)

list price = standard cost * 3,x

(Frank-Lynn-factor)

intercompany pricing: standard cost + x% (for selling to a sister company)

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19.11.2003 8 work organization 8.1 direct departments

- direct working on the product (assembly, testing, developing…) - normally blue collar workers

8.1.1 Measures in Work Structuring: Job Enlargement

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8.1.2 Measures in Work Structuring: Job Enrichment

Problem: not all workers want to do that, they are insecure 8.1.3 Measures in Work Structuring: Job Rotation

Advantage: more flexibility

(in case of vacation/illness more workers can do the same work) Disadvantage: more qualification necessary

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8.1.4 Groups and Teams

8.1.5 Quality Circles

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8.1.6 learning room

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8.1.7 workshop circle

8.1.8 example from Packing Industry

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8.1.9 production cell

8.1.10 lean production

example for lean production see also 8.1.8 example from Packing Industry

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8.1.11 Organization of Team work

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8.1.12 Task: Introduce a work cell organization in production department

1. information of shop council / Wirtschaftsausschuß 2. Kick-Off meeting (start of the project)

• all involved people (workers, supervisors, management, ProductionControl, QualityControl, Shop Council, (+ Consultant))

• project team ( team leader industrial engineer production control finance supervisor (shop council member)

3. next steps

• groups • goals • functional organization segmentation

group work

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8.2 indirect departments

- not directly working on the product (e.g. industrial engineer)

Global steering teams: head and face protection

- sales - market - R&D - production

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2004-01-14 9 material management supply chain:

supplier production distribution sales customer

production control

material/goods/products flow

information flow

rolling forecast

rolling forecast: based on:

- sales statistics - market development - orders you already have

normally done by sales department 2004 2005 Jan Feb March April … Jan Feb product A 1000 1000 800 product B 500 500 400 … product C 900 800 700 product D 800 900 you need this information to order from the supplier especially with respect to long delivery times

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supplier

production

warehouse customer

forecast

MRP

SAP R/2

inventory

purchase orders

production orders

incoming inspectioncertificated

supplier

warehouse

shipping dep.

additional:

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10 Order processing and Production Planning & Control (PPC) 10.1 Tasks, Objectives and Definition of PPC 10.1.1 Order Processing, Production Planning & Control (PPC) and Enterprise

Resource Planning

10.1.2 Production, Planning & Control (PPC) – Tasks and Objektives

10.1.3

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PPC – Tools, Models Y-Integration-Model:

The Aachen Model of PPC:

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Task Reference View of the Aachen Model of PPC:

Planning Levels of the Aachen Model:

10.1.4

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Production Program Planning

10.1.5 Forecast Methods for Sales Planning

10.1.6

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ABC-Analysis

10.1.7 Order Point Method and Order Rhythm Method

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10.1.8 optimal Lot sizes and order quantities

10.1.9 Scheduling

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If real delivery date is later penalty think of bottle necks in production, that can be optimized 10.1.10 methods of lead time reduction

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10.1.11 data management

10.1.12 Push Principle –and Pull Principle

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10.1.13 KANBAN

10.1.14 Summary and Outlook

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